It was one of the founding fathers, Benjamin Franklin, who formed the first insurance company in 1751, called Philadelphia Contributionship, & it was home/fire insurance. According to PBS reports, 143 policies were issued by the company in the first year, & none of the insured property caught fire for seven years afterwards. In fact, Philadelphia used the same scheme that all insurance companies use today; the members of the company paid an amount of money that would be used to restore financial loss due to fire-related causes. Such payment is popularly known today as insurance premium. Benjamin Franklin played a significant role in developing insurance indeed, but he was not the first to introduce auto insurance. As a matter of fact, the first car insurer’s venture began a little earlier than Benjamin Franklin’s time. insurer provides essential financial protection for every vehicle owner in the event of an accident that causes property damages, casualties, medical conditions, & all possible financial losses.
In 1930, more than 100 people were killed in accidents per day. It is not a surprising fact since drivers at that time were not obliged to undergo strict driver licensing, & probably most of them were never registered to any driver test. test. Massachusetts was a step ahead of most states by establishing driver licensing in 1903; however, the state only started to implement driver licensing in 1952.Massachusetts & Connecticut were ahead again with the implementation of compulsory insurance & financial responsibility laws. To be more precise, Connecticut’s law required driver or vehicle owner to produce valid proof of financial responsibility of at least $10,000 in case one is involved in an accident that resulted in more than $100 worth of damages, injury, medical bills, or when the accident caused the death. Back then, drivers were obliged to what was stated by the law after their first-time accident. In 1950s, car insurance began to spread widely across the nation in almost all states. Massachusetts was the only states in the country that required drivers to purchase car insurance policy before vehicle registration. In 1956, New York adopted the same regulation; North Carolina took the same step in the following year. During 1960s & 1970s, almost all states developed the same type of regulation although each state has different specific requirements. Considering that the beginning of compulsory insurance law was in 1925, & it was successfully applied throughout the nation by 1970s, the development is staggeringly quick. Article Source: http://EzineArticles.com/8667035
